TIDMATC

RNS Number : 5066E

Atlantic Coal PLC

13 May 2013

Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining

Atlantic Coal plc ("Atlantic Coal" or the "Company")

Option update

Atlantic Coal, the AIM-listed anthracite coal mining company operating in Pennsylvania, USA, announces an update in relation to the option agreement to acquire additional anthracite mining assets in Pennsylvania, further details of which were originally announced on 15 February 2012 (the "Target Transaction"). As announced on 2 April 2013, the option exercise period ended on 31 March 2013.

The Company has subsequently held a number of discussions with the vendor in connection with the further extension of the option exercise period. However, following these discussions, it was determined by the Atlantic Coal board of directors that an agreement on principal terms could not be achieved that would be acceptable to the Company and in the best interests of the Company's shareholders. Discussions with the vendor have therefore been terminated.

As part of its negotiations in connection with the proposed Target Transaction, the Company was able to secure three indicative offers of debt financing.

Separately, and further to the announcement made on 21 January 2013 regarding the exercise of a lease option over the 410 acre Pott & Bannon Pennsylvanian anthracite mining property, the Board confirms that it is accelerating the payment for and subsequent opening of the Pott & Bannon site. Further details on the expected opening of the site will be announced in due course.

13(th) May 2013

**ENDS**

For further information on the Company, visit: www.atlanticcoal.com or contact:

 
 Steve Best         Atlantic Coal plc           Tel: 020 3328 5670 
 Nick Naylor        Allenby Capital Limited     Tel: 020 3328 5656 
 Mark Connelly      Allenby Capital Limited     Tel: 020 3328 5656 
 Elisabeth Cowell   St Brides Media & Finance   Tel: 020 7236 1177 
                     Ltd

This information is provided by RNS

The company news service from the London Stock Exchange

END

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